Funding Payroll Tax Cuts on the Backs of Home Buyers

By
Services for Real Estate Pros with Marte Cliff Copywriting

The government just keeps on with it's "share the wealth" programs...

This time it's an extension of the 2% break in Social Security payments - funded by a new More political wrangling1/2 point Fannie Mae / Freddie Mac loan guarantee fee. According to my sources, this will result in a one-fourth to one-half percent rate increase for home buyers.

I suppose no one should complain - after all rates are lower now than anyone can remember them being in the past. But still - it's taking from one to give to another. And it just might slow the housing market at a time when we all want it to pick up speed.

The funny thing is - it was just last September when the Fed implemented the "TWIST," which they said was designed to bring mortgage interest rates down.

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Rainmaker
596,993
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

AT the federal level we are all leaderless.  The whole payroll tax break was a terrible idea.

Jan 19, 2012 09:28 AM #1
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Is this the one that was snuck in as a 10 year deal on an extension that was only needed for two months?

Jan 19, 2012 09:37 AM #2
Rainmaker
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Jim - Right. We have NO leadership in Washington D.C. at the moment.

And I agree - they're hollering that there's not enough money coming in to Social Security to keep up with what they're paying out, so they decide to reduce what people pay in. Of course, if they ONLY paid out to those who had paid in, this would be a different story. But that's another topic.

Chris Ann - What I've been reading doesn't say how long the extra Fannie/Freddie fee will last, but for right now the tax cut is through the end of February. Then they have to fight it out again and decide if it will extend to all of 2012.

Jan 19, 2012 10:22 AM #3
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Peter Pfann @ eXp Realty Pfanntastic Properties in Victoria, Since 1986.
eXp Realty, Victoria BC www.pfanntastic.com - Victoria, BC
Talk To or Text Peter 250-213-9490

HI Marte,

We don't know anything about the rules in the USA, what we do know, is that the mess that the financial industry, banks and lenders got the rest of the world into is not going to get fixed in short order so finding ways to pay for it all is a very tall order..... (one could try not going to war all the time.......)

Jan 19, 2012 11:16 AM #4
Rainmaker
716,358
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

What we need to do is raise taxes on the wealthiest 2%...but you can't ram that through Congress.   I come from that backgroun (I'm no longer wealthy - but had a family that was) Trust me - they can handle the taxes and more money would circulate.  It would help the middle class and help us rebulid our infrastructure as well...but its not happening so we are stuck looking under every other rock for funds. 

Jan 19, 2012 03:56 PM #5
Rainmaker
596,993
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
Eugene Oregon's Best Home Search Website

Ruthmarie -

We don't need to look very hard under rocks to find money that the government has no need to spend.  Much of it is in plain view.

Jan 19, 2012 09:52 PM #6
Rainmaker
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Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

Peter & Linda - Amen to all of that.

Ruthmarie - I'd rather see the government quit wasting money in so many ways. And as for Social Security - it was supposed to be for people who had paid in. Now it goes to people who have never contributed a dime.

Jim - Yes, and "small" savings add up. I've known enough government workers to know about thousands of dollars wasted in our little local federal offices - and you know the same kind of waste goes on in every office throughout the country.

Jan 20, 2012 03:33 AM #7
Rainer
147,642
Michael S. Bolton
Michael S. Bolton,Inc. - Zimmerman, MN
MN Appraiser

Marte~When they rolled this out it just baffled me. In one of the toughest real estate markets of our time, they've decided to make it more costly to purchase a home. Only in Washington could they come up with something like this.

Have an awesome day!

Jan 20, 2012 10:36 PM #8
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